The costs incurred by a manufacturer of lawn mowers to develop a method to reduce carbon dioxide emissions from its products would be categorized as what type of cost by an environmental management accounting system (EMA)?

Question

Quizplus · Accepted Answer

Developing a method to reduce carbon dioxide emissions from products is a research and development cost as it involves the costs incurred in researching and developing a new technology to reduce emissions. An environmental management accounting system (EMA) would classify this cost under research and development.

The Costs Incurred by a Manufacturer of Lawn Mowers to Develop